Sales Tax Voluntary Disclosure
Sales Tax Voluntary Disclosure is a way for businesses to avoid fees and criminal charges for taxable income they have failed to report. Companies may innocently overlook income they should have filed, but without the help of a Sales Tax Voluntary Disclosure provider, they can incur serious penalties should the failure to report be discovered.
Although specific rules vary from state to state, Sales Tax Voluntary Disclosure is generally a great way to make sure your business is right with the IRS. If you have resisted the sales tax voluntary disclosure program for fear your failure to report may be viewed as criminal, you should be aware that by law, the information you provide as part of the Sales Tax Voluntary Disclosure program cannot be used against you — unless you violate the terms of the voluntary disclosure agreement.
It’s important to note that Sales Tax Voluntary Disclosure is only for taxes you owe that you did not previously report. If you already filed a return but simply have not paid some or all of the taxes you owe as per that return, you are still responsible for any late fees or penalties on those taxes.
The Services You Can Get From TaxMatrix
As companies expand their footprint to grow their top and bottom line, they may at the same time have created material exposure due to compounding and unfulfilled tax filing obligations. To support your compliance objectives, we have a team dedicated to Voluntary Disclosure and Sales Tax Registration focused on helping our clients negotiate favorable voluntary disclosure and amnesty agreements. These agreements with state agencies can limit the time period for assessing tax, interest and penalty associated with previously unfulfilled tax filing obligations.
As part of this process, our team performs the following services:
- Analysis of tax paid and audit status
- Exposure analysis and tax mitigation guidance
- VDA negotiation and payment remittance
As part of any engagement, our team will analyze the business activities in question and work with the taxpayer to identify and mitigate potential exposure. At the end of each project, the client achieves compliance with the state(s) and a go-forward roadmap to fulfill future filing obligations.
Sales Tax Nexus Surveys
As companies expand their footprint, they may concurrently create material exposure due to compounding and unfulfilled tax filing obligations. To support your compliance objectives, TaxMatrix can assist your company with determining which jurisdictions you have sales and use tax nexus (obligations) and the associated liability. If it is determined you have an exposure accruing, our voluntary disclosure team can pick up the ball and help you achieve compliance and closure to the issue. See below for additional information on these services.
If you are concerned and would like us to perform a Nexus Survey, we can help!
Our team looks forward to partnering with you to support your company’s compliance and recovery objectives. If you are interested, please contact us today.